Can you afford it?

[konapoppy]

As promised, this is the thread to share what you want to buy, and we all say if you can afford it!

Thinking about buying a diamond ring, betting on a derby horse, or going to NYC? Let us be the judges who approve, put you on hold, or deny you. There is no robo-man, there are no shirts to give away. The only thing you get is the approval or scorn of your fellow GBCNers.

So what do you want to buy???

monsterz wants seats to an expensive football game (from what I gather!)
v wants a data plan for her ipad
yentl wants a car
rubytue wants a condo
patbutcher wants some upgrades
madringal wants to know if she can keep her house cleaner

[monsterz]

Tickets to the Patriots/Steelers home opener.

[niq]

Apr 24, 2015 10:53:16 GMT -5 monsterz said:

Tickets to the Patriots/Steelers home opener.

Only if you take me.

[v]

I can afford this, but am debating whether it is worth it.

Data plan on my iPad for summer months, so I can take the iPad with me to our roof or the park. It would only be used on weekend days when the weather is nice enough that I want to be on roof/in park, don't have something else I need to or want to do, and am in relative solitude (if friends are around, I talk to them). And will only entertain me until my battery dies. Also, it is sunny in most of the scenarios I'm envisioning, and iPads aren't great in the sun. Also, apps like crossword puzzles and Candy Crush work even when I'm not corrected to the internet. So we're not talking about a whole lot of use, although I do get annoyed when I'm on the roof/at the park and *can't* connect my iPad to Wifi.

Let's say it would be $20 a month for 5 months (May - September). Does it sound worth the $100 to you?

Note: I spent extra to have an iPad with data capabilities and have never used those data capabilities.

[monsterz]

Apr 24, 2015 10:54:45 GMT -5 niq said:

Apr 24, 2015 10:53:16 GMT -5 monsterz said:

Tickets to the Patriots/Steelers home opener.

Only if you take me.

You are welcome to join us.    I am hoping we can get tickets when they go on sale at face value otherwise we are looking at $250+ per ticket.   

[doobeedoo]

We have had an expensive week-our dishwasher needed to be repaired (80 visit, plus a return visit for another 80 plus a 70 part) and a day later our washing machine broke, so we decided to not replace it and buy a matching dryer. Then DH tells me our 12 year old Weber grill broke, AFTER I purchased a beautiful flank steak for him to grill. If we buy a new grill this weekend, we will have effectively spent $3k in one week on appliances. (that we didn't have planned)

[doobeedoo]

Oh and we literally just started making healthy smoothies last week and our blender broke, too! It was a cheapie Sunbeam circa 1994 or something but still!

[illgetthere]

Apr 24, 2015 11:12:42 GMT -5 v said:

I can afford this, but am debating whether it is worth it.

Data plan on my iPad for summer months, so I can take the iPad with me to our roof or the park. It would only be used on weekend days when the weather is nice enough that I want to be on roof/in park, don't have something else I need to or want to do, and am in relative solitude (if friends are around, I talk to them). And will only entertain me until my battery dies. Also, it is sunny in most of the scenarios I'm envisioning, and iPads aren't great in the sun. Also, apps like crossword puzzles and Candy Crush work even when I'm not corrected to the internet. So we're not talking about a whole lot of use, although I do get annoyed when I'm on the roof/at the park and *can't* connect my iPad to Wifi.

Let's say it would be $20 a month for 5 months (May - September). Does it sound worth the $100 to you?

Note: I spent extra to have an iPad with data capabilities and have never used those data capabilities.

I'd, personally, take a book for times like that. You'd also have your phone if you really wanted to play a game.

[StJess80]

Well, I want a 2015 Mustang, lol. I already know I can't afford it right now. My other list of wants include moving into a 3 story loft apartment/townhouse with an indoor pool (rent is almost twice what we pay at the moment), and an iphone 6. None of those are happening.

I do have a $75 gift card in my wallet and I don't know what to buy. I was thinking about trying to sell my most recent Coach purse because it's too small, and buying something else.

[yentl]

I am driving a 99 Civic. It has about 220K miles and it runs okay, but has considerable body damage. Let's just say my bumper is being held on by screws. I am content to continue driving it until it stops running, but DH and I have been arguing over whether or not to pay cash or take out a loan when the time comes to replace.

If we took the money out of savings to pay for the car, it would leave us with about 6 months in our E fund. It would take us maybe 6 months of saving to replace it.

Honestly if our car holds out and we keep on saving at our typical rate this probably won't even be an issue. I have no idea why DH is so obsessed with having such a large savings account and taking out loans. It drives me bonkers.

[rubytue]

I say yes to football tickets! And yes to v, although I, too, have an iPad with the ability to have a data plan, but never turned it on. I just use my iPhone when we are on the boat instead.

I should post the numbers on my Ocean City condo dream. But I don't have everything together and handy right now. Here are the rough numbers: (PDQ)
*finances go poof*

Condo: under $150k. PITI + condo fees looking to run about $12k/year. Location is 2 hours away. Summer rental rates (12 weeks) are about $1000-1500/week. Would be managed by property manager. Specifics would depend on the exact condo. We'd use mostly off-season anyway due to restrictions on dogs on the beach during the season.

[patbutcher]

I want quartz counter tops and to redo our floors (change the colour of the hardwood to a more modern colour) I have been quoted $1000 for the floors and $2700 for the countertops.

It would considerably increase the value of our house although we have no intention to sell for a few years.

I have been crazy sticking $ into my retirement since I went back to work in Feb after maternity leave as I am trying to catch up. I have put 12% of my annual gross in so far this year. To pay for the above things, I would have to stop paying into retirement at least for a few months, or put a lot less in.

H has a pension
My retirement balance is at around 1 x salary (I'm 36).
emergency fund etc is fully funded.

can I afford it? Or should I keep plugging away at retirement and do renos in 6 months to a year?

[rubytue]

patbutcher - you had me until stopping retirement. You aren't ahead, a bit behind actually. The return on investment will be much higher in retirement than Quartz counters now. Save for it instead!

[patbutcher]

Apr 24, 2015 12:26:20 GMT -5 rubytue said:

patbutcher - you had me until stopping retirement. You aren't ahead, a bit behind actually. The return on investment will be much higher in retirement than Quartz counters now. Save for it instead!

That's what i thought the answer would be. I might leave the countertops for a year or so and just do the floors in a few months with cashflow.

I didn't start retirement savings until I was 29 so it's really tough to get ahead. I have no company match either.

Thank you for the reality check though.

[crashgizmo]

rubytue, I would go for the condo once your current tenant situation feels a little more solid. I know about the neighbor issue and I would hate to see them leave and you be stuck with the mortgage. Although, you have the extra cash in your budget it seems.

patbutcher, definitely don't stop retirement! I have quartz countertops and love them, so I understand the want. But as someone who is playing major catch up in retirement, I wouldn't stop that. I also started saving at 29, so I feel the pain. 

[v]

Apr 24, 2015 11:34:25 GMT -5 illgetthere said:

Apr 24, 2015 11:12:42 GMT -5 v said:

I can afford this, but am debating whether it is worth it.

Data plan on my iPad for summer months, so I can take the iPad with me to our roof or the park. It would only be used on weekend days when the weather is nice enough that I want to be on roof/in park, don't have something else I need to or want to do, and am in relative solitude (if friends are around, I talk to them). And will only entertain me until my battery dies. Also, it is sunny in most of the scenarios I'm envisioning, and iPads aren't great in the sun. Also, apps like crossword puzzles and Candy Crush work even when I'm not corrected to the internet. So we're not talking about a whole lot of use, although I do get annoyed when I'm on the roof/at the park and *can't* connect my iPad to Wifi.

Let's say it would be $20 a month for 5 months (May - September). Does it sound worth the $100 to you?

Note: I spent extra to have an iPad with data capabilities and have never used those data capabilities.

I'd, personally, take a book for times like that. You'd also have your phone if you really wanted to play a game.

I should add -- I *do* always take my Kindle with me.  And usually magazines too.  This would be for when I get bored with my book/too distracted to pay attention to it, and when I'm also annoyed that the screen on my phone is small.   So basically, for GBCNing outdoors.

[crashgizmo]

v, I wouldn't do the data plan, because I think between a kindle and phone I would be safely distracted. That said, you can definitely afford it, so I would approve on the financial aspect.

[madringal]

I am quitting my job next month with nothing lined up. We expect to use savings to replace my (needed) income for the next year to 18 months. I do not want to get rid of my cleaning lady. It's only $65/EOW. DH doesn't have an opinion. What says MM?

[rubytue]

Apr 24, 2015 12:37:01 GMT -5 crashgizmo said:

rubytue, I would go for the condo once your current tenant situation feels a little more solid. I know about the neighbor issue and I would hate to see them leave and you be stuck with the mortgage. Although, you have the extra cash in your budget it seems.

Yeah, that's probably true. I actually went up there and talked to all the other neighbors last weekend. One lady is leading the effort to get them out, and it's second hand, but the owner is planning on divorcing in November and then will evict everyone. And honestly, the condo is kind of a pipe dream right now. So it's not like I'm going this weekend to do a deal lol. More of a "am I crazy for thinking about this?"

Also, I don't mean this as the brag plaint it will be - but H and I have reached the point where the lack of kids has really shown an effect on our budget/savings. And we have everything we need. So... I want to do something with it besides just market investing. (If I can't discuss on MM, where can I say these things....) For those in their 20s/30s - this has really just been the past couple of years. 10 years ago I would not have expected to be able to say these things.

[illgetthere]

Apr 24, 2015 12:45:33 GMT -5 madringal said:

I am quitting my job next month with nothing lined up. We expect to use savings to replace my (needed) income for the next year to 18 months. I do not want to get rid of my cleaning lady. It's only $65/EOW. DH doesn't have an opinion. What says MM?

I'd at least cut back to monthly. With using savings to pay basic bills and not having a job, I don't know that a cleaning lady could be justified. While you might be able to actually afford it, you can't afford it based on using savings for basic needs.

[rubytue]

Apr 24, 2015 12:45:33 GMT -5 madringal said:

I am quitting my job next month with nothing lined up. We expect to use savings to replace my (needed) income for the next year to 18 months. I do not want to get rid of my cleaning lady. It's only $65/EOW. DH doesn't have an opinion. What says MM?

Do you plan on looking for a new job and 12-18 months is worst case? Or is it just a 12-18 month break? If the former, keep but reevaluate in 3 months.

[madringal]

Apr 24, 2015 12:52:58 GMT -5 rubytue said:

Apr 24, 2015 12:45:33 GMT -5 madringal said:

I am quitting my job next month with nothing lined up. We expect to use savings to replace my (needed) income for the next year to 18 months. I do not want to get rid of my cleaning lady. It's only $65/EOW. DH doesn't have an opinion. What says MM?

Do you plan on looking for a new job and 12-18 months is worst case? Or is it just a 12-18 month break? If the former, keep but reevaluate in 3 months.

I do plan on looking for something else.  But I am realistic that it might be hard since I am pregnant.  I think 12 months is a break, and 18 months is worst case.

[Pom]

Apr 24, 2015 12:50:56 GMT -5 rubytue said:

Apr 24, 2015 12:37:01 GMT -5 crashgizmo said:

rubytue, I would go for the condo once your current tenant situation feels a little more solid. I know about the neighbor issue and I would hate to see them leave and you be stuck with the mortgage. Although, you have the extra cash in your budget it seems.

Yeah, that's probably true. I actually went up there and talked to all the other neighbors last weekend. One lady is leading the effort to get them out, and it's second hand, but the owner is planning on divorcing in November and then will evict everyone. And honestly, the condo is kind of a pipe dream right now. So it's not like I'm going this weekend to do a deal lol. More of a "am I crazy for thinking about this?"

Also, I don't mean this as the brag plaint it will be - but H and I have reached the point where the lack of kids has really shown an effect on our budget/savings. And we have everything we need. So... I want to do something with it besides just market investing. (If I can't discuss on MM, where can I say these things....) For those in their 20s/30s - this has really just been the past couple of years. 10 years ago I would not have expected to be able to say these things.

We've been thinking about this also.  I think you should keep working toward this goal and when you find the right property run all the numbers again (and post here if you care to) and I think you could totally be approved!

[v]

Apr 24, 2015 12:00:09 GMT -5 yentl said:

I am driving a 99 Civic. It has about 220K miles and it runs okay, but has considerable body damage. Let's just say my bumper is being held on by screws. I am content to continue driving it until it stops running, but DH and I have been arguing over whether or not to pay cash or take out a loan when the time comes to replace.

If we took the money out of savings to pay for the car, it would leave us with about 6 months in our E fund. It would take us maybe 6 months of saving to replace it.

Honestly if our car holds out and we keep on saving at our typical rate this probably won't even be an issue. I have no idea why DH is so obsessed with having such a large savings account and taking out loans. It drives me bonkers.

We agonized over financing versus paying cash when we bought a new car two months ago (to replace a 2000 Accord with extensive body damage -- ha!).  If you have decent credit, interest rates are really great nowadays so we decided to go the financing route.  We put down $5000 -- which is the max the dealer would let us put on a credit card (I wanted as many points as possible), and financed a little under $15,000 at 1.6% for 5 years.  Our monthly payment is $260 and we'll only pay something like $620 in interest over the life of the loan.  I'm pretty sure we can make much more than that by keeping the money in the market for the next five years so I think we made the right decision.

Long way of saying that I vote that you take out loans

[Deleted]

Apr 24, 2015 15:03:02 GMT -5 v said:

Apr 24, 2015 12:00:09 GMT -5 yentl said:

I am driving a 99 Civic. It has about 220K miles and it runs okay, but has considerable body damage. Let's just say my bumper is being held on by screws. I am content to continue driving it until it stops running, but DH and I have been arguing over whether or not to pay cash or take out a loan when the time comes to replace.

If we took the money out of savings to pay for the car, it would leave us with about 6 months in our E fund. It would take us maybe 6 months of saving to replace it.

Honestly if our car holds out and we keep on saving at our typical rate this probably won't even be an issue. I have no idea why DH is so obsessed with having such a large savings account and taking out loans. It drives me bonkers.

We agonized over financing versus paying cash when we bought a new car two months ago (to replace a 2000 Accord with extensive body damage -- ha!).  If you have decent credit, interest rates are really great nowadays so we decided to go the financing route.  We put down $5000 -- which is the max the dealer would let us put on a credit card (I wanted as many points as possible), and financed a little under $15,000 at 1.6% for 5 years.  Our monthly payment is $260 and we'll only pay something like $620 in interest over the life of the loan.  I'm pretty sure we can make much more than that by keeping the money in the market for the next five years so I think we made the right decision.

Long way of saying that I vote that you take out loans

I agree with V, unless by "savings" you mean literally "savings account" - i.e. money just sitting earning nothing. In that case, I'd just pay cash. If you have the money invested, a low interest loan sounds like the way to go!

OR you could invest the money and still take out a loan

[crashgizmo]

Apr 24, 2015 12:50:56 GMT -5 rubytue said:

Apr 24, 2015 12:37:01 GMT -5 crashgizmo said:

rubytue, I would go for the condo once your current tenant situation feels a little more solid. I know about the neighbor issue and I would hate to see them leave and you be stuck with the mortgage. Although, you have the extra cash in your budget it seems.

Yeah, that's probably true. I actually went up there and talked to all the other neighbors last weekend. One lady is leading the effort to get them out, and it's second hand, but the owner is planning on divorcing in November and then will evict everyone. And honestly, the condo is kind of a pipe dream right now. So it's not like I'm going this weekend to do a deal lol. More of a "am I crazy for thinking about this?"

Also, I don't mean this as the brag plaint it will be - but H and I have reached the point where the lack of kids has really shown an effect on our budget/savings. And we have everything we need. So... I want to do something with it besides just market investing. (If I can't discuss on MM, where can I say these things....) For those in their 20s/30s - this has really just been the past couple of years. 10 years ago I would not have expected to be able to say these things.

This is exactly us, as well. We are still catching up on retirement a bit, but there is no concern about being able to retire early. We've talked about how different this is from our friends with children. I'm 34, he's 43, and we've just really started to notice it this year. 

[Deleted]

I want to spend 6 weeks in Paris over the holidays this year.

I have no passport, no savings for this adventure....

Can I afford it?

[v]

Okay, 2 nos and no yesses. No data plan for me.

[mokes]

Apr 24, 2015 11:12:42 GMT -5 v said:

I can afford this, but am debating whether it is worth it.

Data plan on my iPad for summer months, so I can take the iPad with me to our roof or the park. It would only be used on weekend days when the weather is nice enough that I want to be on roof/in park, don't have something else I need to or want to do, and am in relative solitude (if friends are around, I talk to them). And will only entertain me until my battery dies. Also, it is sunny in most of the scenarios I'm envisioning, and iPads aren't great in the sun. Also, apps like crossword puzzles and Candy Crush work even when I'm not corrected to the internet. So we're not talking about a whole lot of use, although I do get annoyed when I'm on the roof/at the park and *can't* connect my iPad to Wifi.

Let's say it would be $20 a month for 5 months (May - September). Does it sound worth the $100 to you?

Note: I spent extra to have an iPad with data capabilities and have never used those data capabilities.

Can you just tether it to your phone?

[lifeisinteresting]

rubytue
Given your current savings I'd wait until you can cash flow it. That will just be a few years at your current rate but you don't want to add a new condo plus potential new vehicles and lose a tenant.
Me, I'd pay off at least one of the mortgages to start and work on the second before investing in rental or condo property.